IR35 does not apply

The appeal concerned the services of the sole director F of MBF Design Services Ltd.

He established the firm in 1996 after the company he worked for ceased business. Under various contracts MBF Design Services agreed to supply the services of F to Airbus.

HMRC claimed the effective nature of the relationship between F and Airbus was one of employee and employer. Therefore invoking the IR35 legislation they issued assessments to MBF Design Services.

After going through the evidence the First-tier Tribunal said its overall impression was that the arrangement was typical of a contract for services.

For example remuneration was renegotiated ‘whenever the chance’ presented itself errors had to be corrected at F's own expense he could be laid off without notice his pattern of working hours was not typical of that of...